Inflation-Income Inequality Nexus: Panel Threshold Analysis for Developed and Developing Countries

Year 2022, Volume: 30 Issue: 51, 449 - 470, 31.01.2022

Emin Efecan Aktaş , Sevi Dokuzoğlu

https://doi.org/10.17233/sosyoekonomi.2022.01.22

Cited By: 3

Abstract

Most of the studies focusing on the differences between countries in income inequality indicate that the explanatory power of empirical analysis can be increased by including monetary policy variables such as inflation level, inflation level flexibility and interest rate into economic models. Particularly, the distributional effects of inflation have become a major topic. The aim of the study is to analyze the non-linear effects of inflation on income inequality. In this context, panel threshold analysis has been implemented for 40 developed and developing countries in the period of 1993-2019. It is concluded that the aspect of the income inequality is determined by the inflation level. The consumer price index (2010 = 100) has been defined as the inflation indicator, and significant levels with single (49,300) and double (45,000) thresholds have been detected. Besides, estimates have been repeated with another inequality indicator for robustness check and similar results have been obtained. The relationship between inflation and income inequality is in the inverse (negative) aspect below the threshold inflation level and in the same (positive) aspect above it. The analysis confirms the existence of nonlinear effects and contributes to literature samples.

Keywords

Income Inequality, Inflation, Panel Threshold Analysis

Enflasyon-Gelir Eşitsizliği İlişkisi: Gelişmiş ve Gelişmekte Olan Ülkeler için Panel Eşik Değer Analizi

Abstract

Gelir eşitsizliğine ilişkin ülkeler arası farklılıkların konu edildiği çalışmaların çoğu ampirik analizlerin açıklayıcılık gücünün enflasyon seviyesi, enflasyon oranı esnekliği ve faiz oranı gibi para politikası değişkenlerinin iktisadi modellere dâhil edilerek artırılabileceğine işaret etmektedir. Özellikle, enflasyonun dağıtımsal etkileri önemli bir konu haline gelmiştir. Çalışmanın amacı, enflasyonun gelir eşitsizliği üzerindeki doğrusal olmayan etkilerinin analiz edilmesidir. Bu çerçevede, 1993-2019 yıllarını kapsayan dönemde 40 adet gelişmiş ve gelişmekte olan ülke grubu için panel eşik değer analizi gerçekleştirilmiştir. Gelir eşitsizliğinin yönünü enflasyon seviyesinin belirlediği sonucuna ulaşılmıştır. Enflasyon değişkeni olarak tüketici fiyatları endeksi (2010 = 100) tanımlanmış olup tek (49,300) ve çift (45,000) eşikli anlamlı seviyeler tespit edilmiştir. Ayrıca, sağlamlık kontrolü adına tahminler bir diğer eşitsizlik göstergesi ile yinelenmiş ve benzer sonuçlara ulaşılmıştır. Enflasyonun gelir eşitsizliği ile ilişkisi, eşik enflasyon seviyesinin altında ters (negatif) yönlü, üzerinde ise aynı (pozitif) yönlüdür. Analiz, doğrusal olmayan etkilerin varlığını doğrulamakta olup literatür örneklerine katkı sağlamaktadır.

Keywords

Gelir Eşitsizliği, Enflasyon, Panel Eşik Değer Analizi

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